Montenegro’s Ministry of Justice has approved the extradition of Terraform Labs co-founder Do Kwon to the United States. According to local media, Minister of Justice Bojan Božović signed the decision in favor of the American request, despite a competing extradition request from South Korea.
Supreme Court Ruling and Ministry’s Position
Earlier, Montenegro’s Supreme Court recognized the legal basis for Do Kwon’s extradition. The Ministry of Justice stated that its decision took into account the seriousness of the charges, the defendant’s citizenship, the possibility of his further extradition to third countries, and other criteria. The majority of those considerations weighed in favor of the U.S. request.
The Terra Luna Collapse and Fraud Allegations
Do Kwon became the subject of an international investigation after the collapse of his crypto empire in May 2022. The crash of Terraform Labs’ TerraUSD and LUNC tokens wiped out $40 billion from the cryptocurrency market, setting off a domino effect that led to the bankruptcy of many other crypto firms. He is accused of defrauding investors and possibly concealing assets.
In March 2023, Montenegrin authorities detained Do Kwon at the Podgorica airport as he attempted to fly to Dubai using a counterfeit passport. His business partner, Han Chang-Joon, was also arrested. A Montenegrin court later sentenced Do Kwon to four months in prison for using forged documents.
Extradition and International Cooperation
Following his release from prison in March 2024, Do Kwon was transferred to a center for the temporary detention of foreign nationals, where he awaited the final extradition decision. Legal experts note that Montenegro’s ruling could set an important precedent for international jurisdiction over crypto-related financial crimes.
How do you think this decision will affect LUNC and LUNA?
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.